Part 1 - Sanotronics Simulation ModelRead Section 11.1 in the textbook with specific focus on the Sanotronics Model in Figure 11.9. For this problem, you will need the “SanotronicsModel.xlsx” file,...

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Part 1 - Sanotronics Simulation Model



Read Section 11.1 in the textbook with specific focus on the Sanotronics Model in Figure 11.9. For this problem, you will need the “SanotronicsModel.xlsx” file, which is provided as a part of our textbook (the file is also attached).


SanotronicsModel.xlsx


Download SanotronicsModel.xlsx






The file is also available in the 'Student Resources for “Business Analytics", 4th Edition” textbook' information in this Module's content area.



Specifically for this problem, perform the following (be sure to not alter any other cells in the file):




  1. Change “Administrative & Advertising Cost” value to $500,000. Repeatedly press function key F9 to generate new random numbers. What happens to the Profit Distribution? Specifically explain the reason for the change.




  1. Change the “Administrative & Advertising Cost” value back to $1,000,000. Change the Lower Bound value of the Parts Cost to $50. Change the Upper Bound value of the Parts Cost to $170. Repeatedly press function key F9 to generate new random numbers. What happens to the Profit Distribution? Specifically explain the reason for the change.




  1. Change the Lower Bound value of the Parts Cost back to $80. Change the Upper Bound value of the Parts Cost to $100. Change the Standard Deviation value of the Demand to 1,000. Repeatedly press function key F9 to generate new random numbers. What happens to the Profit Distribution? Specifically explain the reason for the change.




  1. Change the Standard Deviation value of the Demand back to 4,500. Change the Selling Price per Unit to $190. Repeatedly press function key F9 to generate new random numbers. What happens to the Profit Distribution? Specifically explain the reason for the change.



Submit the Sanotronics Model Excel file for this problem.Submitting a file with the correct answers but without the SanotronicsModel.xlsx file may result in a significant point reduction.



Include the requested textual responses in your Excel file (please do not submit your textual responses directly into Canvas…points may be deducted accordingly). Include your last name in your file name.







Part 2 - LandShark Simulation Model



Read Section 11.3 in the textbook with specific focus on the LandShark Model in Figure 11.21. For this problem, you will need the “LandSharkResample.xlsx” file, which is provided as a part of our textbook (the file is also attached).


LandSharkResample.xlsx


Download LandSharkResample.xlsx






The file is also available in the 'Student Resources for “Business Analytics", 4th Edition” textbook' information in this Module's content area.



Specifically for this problem, refer to the “Model” sheet in the “LandSharkModel.xlsx” file. Perform the following (be sure to not alter any other cells in the file):




  1. Change “Land Shark Bid Amount” from to $1,300,000. Repeatedly press function key F9 to generate new random numbers. What happens to the Return Distribution? Specifically explain the reason for the change.




  1. Change “Land Shark Bid Amount” back to $1,230,000. Change “Estimated Value” to $ 1,349,000. Repeatedly press function key F9 to generate new random numbers. What happens to the Return Distribution? Specifically explain the reason for the change.




  1. Change “Estimated Value” back to $1,389,000. Modify Cell B5 so that only 2 or 3 bidders are possible. Repeatedly press function key F9 to generate new random numbers. What happens to the Return Distribution? Specifically explain the reason for the change.



Submit the LandShark Excel file for this problem.Submitting a file with the correct answers but without the LandSharkResample.xlsx file may result in a significant point reduction.



Include the requested textual responses in your Excel file (please do not submit your textual responses directly into Canvas…points may be deducted accordingly). Include your last name in your file name.

sanotronicsmodel-2vnzpost.xlsx landsharkresample-ukzkkmyu.xlsx
Answered Same DayOct 18, 2022

Answer To: Part 1 - Sanotronics Simulation ModelRead Section 11.1 in the textbook with specific focus on the...

Rochak answered on Oct 19 2022
63 Votes
Auctions
        Bid Amount (As Fraction of Estimated Property Value)
    Auction    Bid 1    Bid 2    Bid 3    Bid 4    Bid 5    Bid 6    Bid 7    Bid 8    Number of Bidders    Winning Bid            Number of Bidders    Frequency
    1    0.830    0.797    0.833    0.878    0.839    0.843            6    0.878            1    0
    2    0.835    0.823    0.781    0.892    0.767    0.787            6    0.892            2    8
    3    0.763    0.862    0.814    0.895                    4    0.895            3    8
    4    0.771    0.859    0.867    0.850    0.833                5    0.867            4    8
    5    0.836    0.898    0.831    0.897    0.831    0.657    0.846        7    0.898            5    8
    6    0.850    0.863    0.825    0.910    0.848                5    0.910            6    8
    7    0.890    0.820    0.874    0.877    0.818                5    0.890            7    8
    8    0.804    0.881    0.786    0.884    0.773    0.819    0.824        7    0.884            8    8
    9    0.819    0.851    0.786    0.896    0.784    0.792            6    0.896            9    0
    10    0.860    0.756    0.876    0.887    0.866                5    0.887
    11    0.880    0.834    0.831    0.871    0.857    0.759            6    0.880
    12    0.810    0.870                            2    0.870
    13    0.887    0.716    0.817    0.900    0.869    0.885    0.856    0.761    8    0.900
    14    0.703    0.924    0.93    0.886    0.859    0.721    0.907        7    0.930
    15    0.817    0.82    0.815    0.865    0.897    0.932            6    0.932
    16    0.926    0.929                            2    0.929
    17    0.858    0.857    0.937                        3    0.937
    18    0.782    0.851    0.879    0.885    0.778    0.792    0.776    0.832    8    0.885
    19    0.802    0.843    0.87    0.889                    4    0.889
    20    0.854    0.841                            2    0.854
    21    0.883    0.815    0.87    0.924                    4    0.924
    22    0.891    0.809    0.944    0.804    0.819    0.858    0.888    0.835    8    0.944
    23    0.872    0.799    0.84                        3    0.872
    24    0.939    0.867    0.883    0.829    0.931    0.92    0.944        7    0.944
    25    0.877    0.887    0.886                        3    0.887
    26    0.773    0.82    0.945    0.919                    4    0.945
    27    0.848    0.817    0.909    0.777                    4    0.909
    28    0.884    0.86    0.794                        3    0.884
    29    0.859    0.905    0.925    0.866    0.901    0.909    0.921        7    0.925
    30    0.808    0.881    0.827    0.908    0.799    0.802    0.891    0.947    8    0.947
    31    0.862    0.861    0.893    0.845                    4    0.893
    32    0.878    0.763                            2    0.878
    33    0.883    0.902    0.89    0.884    0.942                5    0.942
    34    0.911    0.844                            2    0.911
    35    0.844    0.83    0.853    0.921    0.789    0.864    0.824        7    0.921
    36    0.894    0.879    0.792                        3    0.894
    37    0.832    0.816    0.862    0.883    0.943    0.893            6    0.943
    38    0.801    0.917    0.847    0.874    0.719                5    0.917
    39    0.898    0.882                            2    0.898
    40    0.804    0.906    0.74    0.832    0.945    0.809    0.784        7    0.945
    41    0.883    0.848    0.837    0.807    0.798    0.842    0.865        7    0.883
    42    0.928    0.845    0.753    0.814    0.858                5    0.928
    43    0.868    0.785    0.91                        3    0.910
    44    0.845    0.827    0.82    0.871    0.781                5    0.871
    45    0.884    0.855    0.921    0.871    0.943    0.884    0.815    0.727    8    0.943
    46    0.883    0.906                            2    0.906
    47    0.865    0.938    0.764    0.887    0.773    0.859    0.889    0.898    8    0.938
    48    0.891    0.771    0.927    0.859                    4    0.927
    49    0.895    0.845                            2    0.895
    50    0.915    0.927    0.942    0.887    0.823    0.785    0.853    0.934    8    0.942
    51    0.666    0.866    0.916                        3    0.916
    52    0.770    0.825    0.899                        3    0.899
    53    0.907    0.741    0.645    0.855                    4    0.907
    54    0.788    0.876    0.739    0.928    0.821    0.858            6    0.928
    55    0.895    0.944    0.914    0.882    0.910    0.868            6    0.944
    56    0.816    0.814    0.821    0.880    0.835    0.667    0.861    0.911    8    0.911
Number of Bidders    1    2    3    4    5    6    7    8    9    0    8    8    8    8    8    8    8    0    Number of Bidders
Frequeny
BidList
    Bid    Amount                Sample Statistics
    1    0.830                Minimum    0.645        0.650    1    <0.650
    2    0.797                Maximum    0.947        0.675    3    0.65 - 0.675
    3    0.833                Mean    0.851        0.700    0    0.675 - 0.7
    4    0.878                Standard Deviation    0.056        0.725    4    0.7 - 0.725
    5    0.839                            0.750    4    0.725 - 0.75
    6    0.843                            0.775    14    0.75 - 0.775
    7    0.835                            0.800    23    0.775 - 0.8
    8    0.823                            0.825    38    0.8 - 0.825
    9    0.781                            0.850    38    0.825 - 0.85
    10    0.892                            0.875    48    0.85 - 0.875
    11    0.767                            0.900    57    0.875 - 0.9
    12    0.787                            0.925    27    0.9 - 0.925
    13    0.763                            0.950    23    0.925 - 0.95
    14    0.862
    15    0.814
    16    0.895
    17    0.771
    18    0.859
    19    0.867
    20    0.850
    21    0.833
    22    0.836
    23    0.898
    24    0.831
    25    0.897
    26    0.831
    27    0.657
    28    0.846
    29    0.850
    30    0.863
    31    0.825
    32    0.910
    33    0.848
    34    0.890
    35    0.820
    36    0.874
    37    0.877
    38    0.818
    39    0.804
    40    0.881
    41    0.786
    42    0.884
    43    0.773
    44    0.819
    45    0.824
    46    0.819
    47    0.851
    48    0.786
    49    0.896
    50    0.784
    51    0.792
    52    0.860
    53    0.756
    54    0.876
    55    0.887
    56    0.866
    57    0.880
    58    0.834
    59    0.831
    60    0.871
    61    0.857
    62    0.759
    63    0.810
    64    0.870
    65    0.887
    66    0.716
    67    0.817
    68    0.900
    69    0.869
    70    0.885
    71    0.856
    72    0.761
    73    0.703
    74    0.924
    75    0.930
    76    0.886
    77    0.859
    78    0.721
    79    0.907
    80    0.817
    81    0.820
    82    0.815
    83    0.865
    84    0.897
    85    0.932
    86    0.926
    87    0.929
    88    0.858
    89    0.857
    90    0.937
    91    0.782
    92    0.851
    93    0.879
    94    0.885
    95    0.778
    96    0.792
    97    0.776
    98    0.832
    99    0.802
    100    0.843
    101    0.870
    102    0.889
    103    0.854
    104    0.841
    105    0.883
    106    0.815
    107    0.870
    108    0.924
    109    0.891
    110    0.809
    111    0.944
    112    0.804
    113    0.819
    114    0.858
    115    0.888
    116    0.835
    117    0.872
    118    0.799
    119    0.840
    120    0.939
    121    0.867
    122    0.883
    123    0.829
    124    0.931
    125    0.920
    126    0.944
    127    0.877
    128    0.887
    129    0.886
    130    0.773
    131    0.820
    132    0.945
    133    0.919
    134    0.848
    135    0.817
    136    0.909
    137    0.777
    138    0.884
    139    0.860
    140    0.794
    141    0.859
    142    0.905
    143    0.925
    144    0.866
    145    0.901
    146    0.909
    147    0.921
    148    0.808
    149    0.881
    150    0.827
    151    0.908
    152    0.799
    153    0.802
    154    0.891
    155    0.947
    156    0.862
    157    0.861
    158    0.893
    159    0.845
    160    0.878
    161    0.763
    162    0.883
    163    0.902
    164    0.890
    165    0.884
    166    0.942
    167    0.911
    168    0.844
    169    0.844
    170    0.830
    171    0.853
    172    0.921
    173    0.789
    174    0.864
    175    0.824
    176    0.894
    177    0.879
    178    0.792
    179    0.832
    180    0.816
    181    0.862
    182    0.883
    183    0.943
    184    0.893
    185    0.801
    186    0.917
    187    0.847
    188    0.874
    189    0.719
    190    0.898
    191    0.882
    192    0.804
    193    0.906
    194    0.740
    195    0.832
    196    0.945
    197    0.809
    198    0.784
    199    0.883
    200    0.848
    201    0.837
    202    0.807
    203    0.798
    204    0.842
    205    0.865
    206    0.928
    207    0.845
    208    0.753
    209    0.814
    210    0.858
    211    0.868
    212    0.785
    213    0.910
    214    0.845
    215    0.827
    216    0.820
    217    0.871
    218    0.781
    219    0.884
    220    0.855
    221    0.921
    222    0.871
    223    0.943
    224    0.884
    225    0.815
    226    0.727
    227    0.883
    228    0.906
    229    0.865
    230    0.938
    231    0.764
    232    0.887
    233    0.773
    234    0.859
    235    0.889
    236    0.898
    237    0.891
    238    0.771
    239    0.927
    240    0.859
    241    0.895
    242    0.845
    243    0.915
    244    0.927
    245    0.942
    246    0.887
    247    0.823
    248    0.785
    249    0.853
    250    0.934
    251    0.666
    252    0.866
    253    0.916
    254    0.770
    255    0.825
    256    0.899
    257    0.907
    258    0.741
    259    0.645
    260    0.855
    261    0.788
    262    0.876
    263    0.739
    264    0.928
    265    0.821
    266    0.858
    267    0.895
    268    0.944
    269    0.914
    270    0.882
    271    0.910
    272    0.868
    273    0.816
    274    0.814
    275    0.821
    276    0.880
    277    0.835
    278    0.667
    279    0.861
    280    0.911
<    0.650    0.65 - 0.675    0.675 - 0.7    0.7 - 0.725    0.725 - 0.75    0.75 - 0.775    0.775 - 0.8    0.8 - 0.825    0.825 - 0.85    0.85 - 0.875    0.875 - 0.9    0.9 - 0.925    0.925 - 0.95    1    3    0    4    4    14    23    38    38    48    57    27    23    Bid Amount (Fraction of Property Value)
Frequency
Model
    Land Shark
    Parameters
    Estimated Value    $1,389,000
    Number of Bidders    3
    Bid Index    Bid Fraction    Bid Amount
    1    0.767    $1,065,363
    2    0.866    $1,202,874
    3    0.887    $1,232,043
    4    0.887    $0
    5    0.667    $0
    6    0.831    $0
    7    0.917    $0
    8    0.907    $0
    Model
    Land Shark Bid Amount    $1,230,000
    Largest Competitor Bid    $1,232,043
    Land Shark Win Auction?    0
    Land Shark Return    $0
    Simulation Trial    Number of Bidders    Bid 1    Bid 2    Bid 3    Bid 4    Bid 5    Bid 6    Bid 7    Bid 8    Win?    Return        Summary Statistics
    1    3    $1,065,363    $1,202,874    $1,232,043    $0    $0    $0    $0    $0    0    $0        Count    1000        Bin    Frequency
    2    3    $1,145,925    $1,070,919    $1,109,811    $0    $0    $0    $0    $0    1    $159,000        Minimum Return    $0        $0    632
    3    3    $1,209,819    $1,291,770    $1,122,312    $0    $0    $0    $0    $0    0    $0        Maximum Return    $159,000        $10,000    0
    4    3    $1,158,426    $1,248,711    $926,463    $0    $0    $0    $0    $0    0    $0        Mean Return    $58,512        $20,000    0
    5    3    $1,148,703    $1,173,705    $1,112,589    $0    $0    $0    $0    $0    1    $159,000        Standard Deviation of Return    $76,718        $30,000    0
    6    3    $1,080,642    $1,232,043    $1,193,151    $0    $0    $0    $0    $0    0    $0                    $40,000    0
    7    3    $1,197,318    $1,191,762    $1,137,591    $0    $0    $0    $0    $0    1    $159,000        P(Win Auction)    0.368        $50,000    0
    8    3    $1,245,933    $1,173,705    $1,138,980    $0    $0    $0    $0    $0    0    $0        Standard Error of Proportion    0.015        $60,000    0
    9    3    $1,145,925    $1,226,487    $1,222,320    $0    $0    $0    $0    $0    1    $159,000                    $70,000    0
    10    3    $1,194,540    $1,186,206    $1,291,770    $0    $0    $0    $0    $0    0    $0        95% C.I. on Mean Return    $53,751        $80,000    0
    11    3    $998,691    $1,176,483    $1,120,923    $0    $0    $0    $0    $0    1    $159,000            $63,273        $90,000    0
    12    3    $1,193,151    $1,243,155    $1,311,216    $0    $0    $0    $0    $0    0    $0                    $100,000    0
    13    3    $1,226,487    $1,069,530    $1,223,709    $0    $0    $0    $0    $0    1    $159,000        95% C.I. on P(Win...
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